An effective information security culture is vital to the success of information systems governance, risk management and compliance. Small and medium size enterprises (SMEs) face special challenges developing an information security culture as they may lack the information security knowledge, skills and behaviours of large organisations. This paper reports the main findings from an interpretive study of key influences enabling an effective information security culture for Australian SMEs. The paper provides a framework depicting external and internal influences on SME information security culture and a set of key challenges in the Australian context. The findings highlight that SME owner attitudes and behaviour – in turn influenced by government involvement - strongly influence information security culture for Australian SMEs. A surprising finding is the potential influence of the Australian culture. Practical and theoretical implications are discussed.

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